FISCAL NOTE
FUND(S):
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
While annual leave donation is usually considered to be a zero net cost to the state, expansion of the program in this manner has the potential to increase costs.
First, employees who expect to lose leave at year end are likely to donate leave. Since this leave would be lost at year end, reducing the state liability for annual leave, there is a retention of liability when that leave is donated. By expanding the pool of employees eligible for donation we expand the potential cost associated with leave that would have been lost if not donated.
If employees are eligible for leave donation simply by having exhausted all paid leave they would be more likely to exhaust that leave and apply for leave donation than if they were facing time away from work without pay. By not requiring a medical emergency the field is opened up to a more expansive use of leave donation.
Expanded numbers of unpaid leaves of absence would increase personal services costs to the work unit of the employee receiving leave donation. These costs include overtime, temporary upgrade, or the cost of hiring a temporary employee to replace the employee on leave donation.
These costs are difficult to estimate but have the potential to be significant.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2012
Increase/Decrease
(use"-") |
2013
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
It is assumed that every full time employee of the state is in a position necessary to the successful operation of the work unit. It is therefore assumed that employees who are on a leave of absence/leave donation would have to be replaced either through overtime or the hiring of a temporary employees.
Memorandum
The bill indicates that an employee must exhaust “all paid leave” to qualify for leave donation, however an employee cannot exhaust sick leave where no medical emergency exists.
The proposed revisions would create an environment in which employees who misuse leave would constantly be eligible for leave donation each time they call in sick or take unplanned annual leave. The administrative costs associated with such a program, particularly the year-end leave shuffling, would be significant.
Person submitting Fiscal Note: Melinda Campbell
Email Address: melinda.s.campbell@wv.gov